In a move that has sparked concern among rank-and-file employees, the Labour Party is proposing a pay freeze for its staff this year, following the party’s victory in the 2024 general election. The proposal comes as the party grapples with the loss of “Short money,” the constitutional payment given to opposition parties, which amounted to £7.5 million in 2023.
According to sources within the party, the pay freeze has been met with disappointment and frustration among Labour’s workforce, who feel that their hard work and sacrifices in delivering the election result have not been adequately recognised. One employee expressed their discontent, stating, “A pay freeze is a kick in the teeth for all the hard work and sacrifice that delivered last year’s general election result. It raises serious questions about what the most senior staff – many of whom are no longer working for the party – were doing to prepare for something they knew was coming.”
Another employee criticised the party’s priorities, noting, “No money for pay rises for us on the ground but more senior staff have been appointed on six-figure salaries in London in recent weeks. How many directors do they need down there?”
The proposal has also raised concerns about the party’s ability to retain and attract talented staff, with some questioning whether the party’s leadership has adequately planned for the financial implications of its election victory.
Hollie Ridley, Labour’s general secretary, reportedly became emotional when addressing staff about the pay deal, expressing her appreciation for their efforts and the value she places on their work.
The pay freeze proposal comes as the Labour government faces a potential standoff with public sector workers, who are demanding pay rises that keep up with the rising cost of living. The government has recommended a 2.8% pay rise for teachers, NHS staff, and senior civil servants, which unions have deemed insufficient.
Labour party staff received a 5% pay rise in 2023 and a 10.5% increase the following year, according to internal data. However, the party’s workforce has seen a significant reduction, from a peak of 681 employees in the run-up to the election to 533 at the end of 2023, with 494 of them employed full-time.
Despite the financial challenges, the party remains focused on delivering its “Plan for Change” and supporting the new Labour government. A party spokesperson emphasised the vital role of Labour’s staff in turning the tide on 14 years of Conservative rule and their continued importance in the party’s efforts to implement its policy agenda.